Clean Freight Program: Baseline Study (Phase-II)
Rising Freight Demand & Emissions
India’s freight transport demand is witnessing a significant rise, projected to increase from 2,682 billion tonne-kilometres (BTKM) in 2019-20 to 7,260 BTKM by 2030-31, with road freight expected to account for approximately 85 per cent of the total movement. Continued reliance on road transport, coupled with the sector’s dependence on fossil fuels, poses critical challenges for India’s long-term energy security and climate mitigation goals.
Methodology & Priority Sector
The study builds upon the experiences of the Perform, Achieve and Trade (PAT) scheme and aligns with the Carbon Credit Trading Scheme (CCTS) notified in 2023, which plans to include the transport sector in future. A methodological framework was developed to identify priority sectors with substantial freight demand and emissions impact. Based on this approach, four sectors (Cement, Iron & Steel, Fertilisers, and Aluminium) were shortlisted due to their production intensity and reliance on road transport. The report also examines global methodologies for freight emissions accounting, including UNFCCC CDM 17, EN 16258:2013, ISO 14083:2023, SmartWay, and UK GHG reporting guidelines, to draw key takeaways for India.
Pathways for a Clean Freight Program in India
The study recommends the launch of a dedicated Clean Freight Program for India, linked to CCTS to enable emissions reduction. Key recommendations include the inclusion of Scope 3 emissions from upstream and downstream transport operations under the Business Responsibility and Sustainability Reporting (BRSR) framework, focused sectoral entry through large shippers, and the establishment of a carrier rating system to encourage adoption of zero-emission vehicle (ZEV) technologies.